Login

I have trusted Parms + Company with all our tax and accounting needs for over a decade. I have always been very pleased with their professionalism, knowledgeably, flexibility and high degree of personal attention. Though I’m sure their roster is deep, they always make me feel like I am their only client. I consider John Parms a mentor, trusted advisor and a friend. He and the rest of his team keep us in good hands and on a good track. I look forward to having Parms + Company as a strong partner to Fine Citizens for may years to come. - Phil Wilson Founder, President & CEO Fine Citizens

Home > Resources + Tools > Blog > Workers’ Comp Update for Nonprofits

Workers’ Comp Update for Nonprofits

October 15, 2015

BWC ends mandatory coverage for Volunteer Officers of Nonprofits.

New legislation recently went into effect that will have a positive on Ohio’s nonprofit organizations.

Effective September 29, 2015, the Ohio Bureau of Workers’ Compensation no longer requires nonprofits to have workers’ compensation coverage for their volunteer corporate officers. This means nonprofits will no longer need to pay premiums for these individuals.

Historically, under Ohio law, corporate officers – whether paid or unpaid – had been characterized as employees for workers’ compensation purposes and considered employees. Therefore, nonprofits were required to report minimum payroll to BWC and pay premium payments to cover their volunteer corporate officers.

Under the new legislation, true volunteer officers of nonprofit corporations are no longer treated as employees an no longer subject to mandatory workers’ compensation coverage.

This much-needed law change removes an unnecessary financial burden on Ohio’s nonprofits. This change frees up more money for nonprofit organizations to provide services that help local communities throughout Ohio.

On the other hand, if a nonprofit wants coverage for its volunteer officer, it need only report some amount of pay to the officer; however, this individual will no longer be considered a volunteer. This employee is then subject to minimum and maximum reporting requirements.





Source:
Ohio BWC ENews
Ohio Revised Code Sec. 4123.01(A)(2)(d)

Parms + Company offers a personal approach to accounting services and shows genuine interest in our business. The fact that we’ve been a client of Parms + Company for 30 years is proof of their quality service. With larger firms, you’re just another client. But not with Parms + Company. They give us exceptional service, and we are happy to continue this successful relationship with them. - Sommerville Funeral Services Akron, Ohio